Africa urged to up sustainability reporting as global meet kicks off

ICPAK Chairman Dr Elizabeth Kalunda with Economic Planning PS Dr Boniface Makokha and PAFA vice president Prem Govender. [ICPAK]

Calls for coordinated global action and strengthened governance to help Africa fully harness sustainability took centre stage in Nairobi yesterday.

Speaking during the opening of the International Federation of Accountants (IFAC) Connect: Africa 2025, IFAC Chief Executive Officer Lee White warned that the short timelines for adopting Environmental, Social, and Governance (ESG) standards remain a major challenge for many economies.

The world, White said, is entering a new era of sustainability reporting, and countries must move quickly to keep pace.

In just two years, jurisdictions representing more than half of global GDP have adopted or aligned with the International Sustainability Standards Board (ISSB) framework.

By June 2025, at least 36 jurisdictions had embraced the IFRS Sustainability Disclosure Standards, making global comparability in reporting a present reality.

"Regional professional accounting leadership is driving economic growth and resilience. With our valued members and partners in Africa, we are striving for common goals, the use of global standards shaped within local and regional conditions in the public interest. We are Better Together," White said.

Kenya has already set out a phased roadmap for adopting the new standards. Since January 2024, companies have been encouraged to voluntarily apply IFRS S1 and S2.

Compliance will become mandatory in 2027 for public interest entities such as listed firms, banks, and insurers, extend to large private companies in 2028, and cover SMEs by 2029.

A government adoption framework is still under development. Institute of Certified Public Accountants of Kenya (ICPAK) says this approach gives businesses time to adapt while ensuring Kenya remains competitive in attracting investment.

Trust and credibility are also being reinforced through new assurance standards. The International Auditing and Assurance Standards Board (IAASB) has issued ISSA 5000, the first comprehensive global sustainability assurance standard, set to take effect in December 2026.

At the same time, the International Ethics Standards Board for Accountants (IESBA) has introduced ethics guidelines for sustainability assurance professionals.

For Kenya, the stakes are high. With IFRS S1 and S2 already in effect, listed companies and state corporations are expected to integrate sustainability metrics into core financial disclosures.

Analysts warn that delays in adoption could undermine investor confidence and restrict access to international capital markets.

Already, the Nairobi Securities Exchange (NSE) reports that nearly 40 per cent of foreign investors now consider ESG compliance a key factor in their decisions.

ICPAK Chairperson Prof Elizabeth Kalunda said hosting the summit in Nairobi cements Kenya's role as a regional leader in governance and sustainability.

"Together with IFAC and PAFA, we are driving a transformative agenda grounded in accountability, transparency, and innovation. This is an opportunity for Kenya to shape Africa's voice in the global sustainability conversation."

Over the next two days, delegates will focus on how African countries can localise the ISSB framework, strengthen governance, and unlock new opportunities for trade, investment, and development.

The Nairobi forum is the first of four global IFAC Connect events this year, ahead of gatherings in Riyadh, Mexico City, and Jakarta.